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Machinery that cost $206,000 on 1 January 201 was sold for $82,500 on 30 June 206. It was being depreciated over a 10 -year llfe
Machinery that cost $206,000 on 1 January 201 was sold for $82,500 on 30 June 206. It was being depreciated over a 10 -year llfe by the straight-line method, assuming its residual value would be $19,000. A bulding that cost $1,840,000, residual value $114,000, was being depreclated over 20 years by the straight tine method. At the beginning of 206, when the structure was 8 years old, an additional wing component was constructed at a cost of $605,000. The estimated life of the wing considered separately was 15 years, and its residual value was expected to be $30,500. The accounting period ends 31 December. Required: 1. Give all required entries to record: a. Sale of the equipment. including depreciation to the date of sale. b. The addition to the building - cash was paid. c. Depreciation on the bulding and its addition after the latter has been in use for one year. (If no entry is required for o transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) View transaction list View journal entry worksheet (1) Record the depreciation expenses (Equipment). 2 Record the sale of equipment. (3) Record the addition on building. 4 Record the depreciation expenses (Building Wing). 5 Record the depreciation expenses (Building). Note : O = journal entry has been entered 2. Complete the part of the balance sheet given below showing how the building and attached wing would be reported
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